What is insurance? – NABTEB QUESTION

Insurance is a contract which one party undertakes to indemnify another against loss, damage or liability arising from an unknown or contingent event.

OR

Insurance is a provision made for the protection of persons or objects against risks.

OR 

Insurance is a pool of risks whereby many people who feel that they may suffer one risk or the other contribute money to create a common fund and indemnify any of them that may suffer any of the insurable risks.

OR

Insurance is an agreement whereby a party known as the insurer agrees to indemnify another party known as the insured/assured for the risk that he may
likely suffer.